13th Sep 2001

GOVERNMENT GIVES GO AHEAD FOR COOLKEERAGH ESB POWER STATION

Coolkeeragh ESB - the partners in the development of a new natural gas CCGT power plant have received consent to build their power plant at Coolkeeragh from the Department of Enterprise, Trade and Investment.

The 400 MW power plant's cost of £150 million is being met in full by the project developers and will serve its growing customer base in Northern Ireland . This new plant will provide the cheapest electricity in Northern Ireland as well as providing electricity system stability and environmental benefits.

Coolkeeragh ESB intend to re-use much of the existing infrastructure at Coolkeeragh.

The developers have been managing the power plant development on the basis of a programme and have met all the key milestones and are on target to start commercial operation in 2004.

To date it has received:

Grid Connection Offer form NIE June 2001

Planning Permission awarded July 2001

Article 39 Consent awarded August 2001

Contract negotiations for new power plant, including gas and steam turbines (a nine-month process) are largely completed.

Coolkeeragh ESB are working closely with the gas developers Questar / BGE to finalise gas transportation agreements. Questar / BGE are in final negotiations with OFREG and the Department of Enterprise Trade and Investment to build, as a single project, a gas pipeline from Gormanstown, Co Dublin to Belfast and from Belfast to Derry . Decisions are expected imminently which will allow licence award for the gas pipelines and signing of contracts. This in turn will enable Coolkeeragh ESB to commit to capital contracts and place deposits of up to £10 million.

Richard Sterling, Managing Director of Coolkeeragh Power Ltd. rejected the comment by AES-Kilroot that a power station for Derry is flawed and said: "There is already a major concentration of power generation in the East. The System Operator has identified a need for balance to ensure security of supply for Northern Ireland ."

Michael Aherne, Manager of ESB Northern Ireland said: "Any energy producer is entitled to develop a power station in a competitive market. We are building our plant to serve our customers, AES-Kilroot operate under an NIE contract not compatible with an open competitive market and are part of the existing high electricity costs prevailing in Northern Ireland ."

FOR FURTHER INFORMATION PLEASE CONTACT

LYN SHERIDAN OR CLAIRE AIKEN

AT AIKEN COMMUNICATIONS

ON BELFAST 9066 3000 OR 07770 584157

OR E-MAIL lyn@aiken.co.uk

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